The second major financial instrument based on bitcoin is preparing to trade on the Chicago Mercantile Exchange.The CHICAGO MERCANTILE EXCHANGE Group, one of the USA's greatest exchanges of options and futures ,started out bitcoin futures contracts for trading at 6 p.m. EST Sunday. The initial price for bitcoin futures contractss was $20,650, and the crypto currency was trading at $20,135 at 6:08 p.m. EST.The virtual currency has skyrocketed in popularity and gain this year whilst drawing questions relating to its volatility.The CME bitcoin futures and options, like the bitcoin futures that now trade on the Chicago Board Options Exchange, do not involve real bitcoin. They will reflect an index of bitcoin price. Each contract will be for 5 bitcoin.

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BITCOIN made its anticipated debut on the CBOE futures market this weekend, but traders are worried about the impact this might have on bitcoin prices.Bitcoin Futures highlights the Bitcoin CME Futures contract, the Bitcoin Cboe Futures Contract, and the Bitcoin/USD spot rate. According to the CME Group, in December the average daily trading volume was about 1,600 contracts. Note: Each CBOE bitcoin futures contract relates to the underlying price of one bitcoin.

As it is a derivative, traders do not actually own the underlying asset, they just use it to speculate on the price movement.Going Listed here